meed-logo

line1 line2 line3
SIGN IN / REGISTER

TotalEnergies and OQ break ground on Marsa LNG project

2 May 2025

France’s TotalEnergies and OQ Exploration & Production (OQEP), a subsidiary of Omani state energy conglomerate OQ Group, have broken ground on the Marsa liquefied natural gas (LNG) bunkering and export terminal project in Oman.

The estimated $1.6bn LNG project is being built in the sultanate’s northern port city of Sohar and will have a production capacity of 1 million tonnes a year (t/y).

TotalEnergies is the majority stakeholder in the Marsa LNG project, holding an 80% interest, with OQ Group, through OQEP, holding the remaining 20% stake.

LNG production from the facility is expected to start in the first quarter of 2028, TotalEnergies and OQ said in a joint statement.

The Marsa LNG project will primarily supply marine fuel to vessels such as container ships, tankers and large cruise ships, and is said to be the first marine LNG bunkering hub in the Middle East.

Last April, TotalEnergies awarded Technip Energies the main contract to execute engineering, procurement and construction (EPC) works on the Marsa LNG project.

US-based Chicago Bridge & Iron (CB&I) won a contract to build the main concrete LNG storage tank, which will have a capacity of 165,000 cubic metres, and to complete the associated piping upgrade. The firm described its contract as being “significant”, a term it uses to denote a value range of $100m-$250m.

In addition to awarding the EPC contracts for the project, TotalEnergies and OQ also achieved the final investment decision on the Marsa LNG project last April. Marsa LNG was formed in December 2021 through a joint-venture agreement between the two companies.

Marsa LNG infrastructure contracts

Along with the groundbreaking ceremony on 1 May, Oman’s Sohar Port & Freezone, where the Marsa LNG terminal is being built, also awarded three contracts covering infrastructure and other services related to the project.

WSP International’s Oman branch was awarded a consultancy services contract, to provide project management, back-office support, design review, site supervision and contract management services, with the contract running from November 2024 to November 2028.

The second contract was signed with the Netherlands-headquartered Boskalis International’s Oman branch for dredging works, involving the removal of approximately 3.8 million cubic metres of material to develop the access channel, berth pocket and turning circle, with completion expected in September.

Sohar Port & Freezone announced the start of dredging works on the Marsa LNG project in March, when Boskalis was contracted for the job.

The third contract was awarded to Six Construct’s Oman branch, covering the construction of the LNG jetty, shore protection and drainage systems, with a duration of 16 months.

MEED also recently reported that Technip Energies, as the main EPC contractor on the Marsa LNG project, had awarded a couple of sub-contracts to local firms.

Sarooj Construction Company won a sub-contract for temporary construction facilities at the Marsa LNG terminal project site. Industrial Technology Services (Intecs) was sub-contracted by Technip Energies to perform civil works and construct utility buildings.

LNG production

The Marsa LNG facility will consist of a single processing train that will draw up to 150,000 cubic feet a day of natural gas feedstock from the Mabrouk Northeast field, located in Oman’s onshore Block 10 concession.

TotalEnergies is part of a consortium that operates the Block 10 hydrocarbons concessions in the sultanate. Oman’s Energy & Minerals Ministry signed a concession agreement in December 2021 with a consortium led by Shell Integrated Gas Oman, the Omani subsidiary of UK-based energy major Shell, to develop and produce natural gas from Block 10.

As part of the concession agreement, Shell operates Block 10, holding a 53.45% working interest, with OQ and Marsa LNG holding 13.36% and 33.19% stakes, respectively.

TotalEnergies is also a 22.5% stakeholder in the Block 11 onshore concession, from which the Marsa LNG project could draw gas feedstock in the future. Shell Development Oman is the majority (67.5%) stakeholder in Block 11, for which the Omani government signed an exploration and production sharing agreement in September 2022.

Solar-powered LNG terminal

The Marsa LNG complex will be completely electrically driven and supplied with solar power. The project will be “one of the lowest GHG [greenhouse gas] emissions intensity LNG plants ever built worldwide”, with a GHG intensity below 3 kilogrammes of carbon dioxide per barrel of oil equivalent, the partners said in a statement.

TotalEnergies said it is in an “advanced stage of discussions” with OQ’s renewable energy branch, OQ Alternative Energy, to jointly develop a portfolio of up to 800MW, including a 300MW solar project that will supply power to the Marsa LNG facility. The two companies will form a joint venture in which OQ Alternative Energy will own 51% stake, with TotalEnergies holding the other 49%.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13803437/main5008.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Populous wins Bahrain Sports City contract

    21 April 2026

     

    US-based engineering firm Populous has won a BD5m ($13.5m) contract for the Sports City development at Sakhir in Bahrain.

    The contract was awarded by Bahrain’s Ministry of Works, Municipalities Affairs & Urban Planning.

    The scope covers pre-contract consultancy services, including finalising the masterplan and internal infrastructure, completing phase 1A design works and preparing tender documents.

    Populous is a specialist sports venue designer that formerly operated as part of HOK Group.

    The contract was first tendered in 2021, when Populous emerged as the sole bidder.

    At the time, it was reported that Sports City would include Bahrain’s largest sports stadium and a multi-purpose indoor sports arena.

    The project is expected to provide renewed impetus to Bahrain’s construction and transport sector, which has struggled in recent years, with the total value of awarded contracts falling for a third consecutive year.

    According to regional project tracker MEED Projects, about $400m-worth of contracts had been awarded in Bahrain by the end of October last year – less than half the $1.2bn recorded during the same period the previous year.

    The sector has yet to return to pre-pandemic levels. Before 2020, Bahrain consistently awarded more than $2bn in contracts annually, peaking at nearly $4bn in 2016.

    Bahrain’s construction industry is forecast to record average annual growth of 4.9% in 2026-29, supported by investments in transport infrastructure and renewable energy projects aligned with Bahrain’s Economic Vision 2030.

    Vision 2030 includes the BD11.3bn ($30bn) Strategic Projects Plan, unveiled in October 2021, encompassing 22 national infrastructure projects. It also includes plans to create five new cities by 2030: Fasht Al-Jarm, Suhaila Island, Fasht Al-Azem, Bahrain Bay and the Hawar Islands.

    Growth over the forecast period is also expected to be driven by investments under the National Renewable Energy Action Plan, which targets a 30% reduction in carbon emissions by 2035, compared to 2015 levels, and aims to achieve net-zero emissions by 2060.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16487784/main.jpg
    Yasir Iqbal
  • Entries now open for MEED Projects Awards 2026

    21 April 2026

    Enter the awards

    The MEED Projects Awards in association with Mashreq 2026 have officially opened for entries, inviting companies, developers, contractors and project teams to submit their projects for the region’s most prestigious construction awards.

    For over 15 years, the MEED Projects Awards have celebrated the Middle East and North Africa’s most ambitious and transformative projects, recognising technical excellence, innovation, sustainability and delivery impact. Past editions have highlighted landmark developments that set new benchmarks for the region’s built environment, including internationally recognised projects such as Burj Khalifa and Louvre Abu Dhabi.

    “The MEED Projects Awards are the gold standard for recognising outstanding achievements in construction across Mena, showcasing the region’s technical and design excellence while bringing the industry together to celebrate and connect over the very best projects of the year,” said Ed James, head of content and research at MEED.

    “As a long-standing partner of the MEED Projects Awards, Mashreq is proud to support a programme that is recognised for its independence, credibility and industry impact. These awards celebrate projects that set benchmarks for excellence and contribute meaningfully to the region’s development,” said Arun Mathur, executive vice-president and global head of contracting finance at Mashreq.

    Winners are chosen through a rigorous, independent judging process, led by a panel of more than 50 senior industry experts representing developers, contractors, engineers and project specialists. The awards celebrate projects across a wide range of sectors, including Building, Transport, Energy, Water, Healthcare, Education, Hospitality, Culture, Industrial, Power, Small Projects and Developments.

    Being shortlisted or winning a MEED Projects Award places a project among the region’s elite, offering regional recognition, global exposure and industry credibility.

    Submissions are now open, with full category details and entry guidelines available on the official entry platform.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16487756/main.gif
    MEED Editorial
  • Work advances on Saudi Maaden mine renewables project

    21 April 2026

     

    Local contractor Arabian Qudra Company is advancing construction works on an integrated solar photovoltaic (PV) and battery energy storage system (bess) project at the Al-Baitha bauxite mine in Saudi Arabia.

    The off-grid facility will integrate an 8MWp solar PV array with a 30MWh bess, allowing the mine to operate almost entirely on renewable energy.

    Emerge, a joint venture of Masdar and EDF Power Solutions, is developing the project, including managing financing, design, procurement, construction, operation and maintenance.

    Last August, MEED reported that Maaden Bauxite & Alumina Company (MBAC), a subsidiary of Saudi Arabian Mining Company (Maaden), had signed a 30-year power purchase agreement with Emerge to supply its Al-Baitha bauxite mine with renewable energy.

    Arabian Qudra Company was subsequently appointed as the engineering, procurement and construction (EPC) contractor, with works beginning at the start of 2026.

    The firm is a subsidiary of Abunayyan Holding Company, a privately owned Saudi industrial group.

    The project is expected to generate around 17,300MWh of electricity annually and provide a continuous 24/7 power supply. It will reduce carbon dioxide emissions by approximately 13,800 tonnes a year.

    According to projects tracker MEED Projects, construction is expected to be completed in early 2028.

    Maaden Solar 1

    Maaden is also in the early stages of developing Maaden Solar 1, potentially the world’s largest solar process heat plant. 

    MEED previously reported that US-based GlassPoint had partnered with Saudi Arabia’s Ministry of Investment as a first step towards construction of the planned $1.5bn project.

    In 2025, Spain-headquartered Cox Energy signed a collaboration agreement with the client to participate in the project. The client had been expected to invest approximately $31.1m in the first phase of the project.

    Once complete, Maaden Solar 1 will be a 1,500 megawatt-thermal (MWth) facility. A timeline for the project remains unclear, with construction not expected to begin until at least 2027.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16487404/main.jpg
    Mark Dowdall
  • Egypt to build Olympic Village project on Red Sea

    21 April 2026

    Egypt has moved to back a major new sports development on the Red Sea coast, officially assigning a 225-acre plot for a planned Olympic Village in the Red Sea Governorate.

    The site is located opposite the resort destination of El-Gouna, giving the project access to an established tourism corridor.

    The development is intended to strengthen Egypt’s ambition to become a hub for international sports tourism, with facilities designed to support large-scale regional and global championships.

    Plans include stadiums and purpose-built arenas designed to meet Olympic-level requirements, enabling the complex to accommodate multiple sports and event formats.

    To support visiting delegations and spectators, the Olympic Village is expected to include on-site hospitality facilities, including a hotel.

    The project is intended to operate as an integrated, self-contained destination capable of staging regional and international tournaments, while also leveraging the Red Sea’s year-round appeal for camps, friendlies and seasonal training programmes.

    According to UK analytics firm GlobalData, Egypt’s residential construction sector is expected to grow by 8.3% from 2026 to 2029, supported by investments in the housing sector and the government’s focus on addressing the country’s growing housing deficit amid a rising population.

    The commercial construction sector is expected to register real-term growth of 6.6% in 2026-29, supported by a rebound in the tourism and hospitality markets and an improvement in investment in office buildings and wholesale and retail trade activities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16485900/main.jpg
    Yasir Iqbal
  • Algeria launches oil and gas licensing round

    21 April 2026

    Algeria has launched a new bid round offering seven exploration blocks to international companies.

    The round was launched by the National Agency for the Valorisation of Hydrocarbon Resources (Alnaft), which manages and regulates the upstream oil and gas sector in the country.

    The blocks are located in the regions of Ouargla, Illizi, Touggourt and El-Bayadh. Both oil and gas assets are included.

    The blocks on offer are:

    • Est Bordj Omar Driss 1
    • Illizi Centre 1
    • El-M’Zaid Nord
    • El-Borma 2
    • El-Hadjira 3
    • El-Benoud Est
    • Touggourt Sud

    Technical evaluation of bids will cover exploration, development and production optimisation plans.

    All bids – except those for Est Bordj Omar Driss 1– will also be assessed against financial criteria, including the bidder’s participation rate in financing upstream operations.

    Successful bidders will access the assets through contracts with Sonatrach, either via production service agreements or participation agreements, depending on the block.

    Algeria is currently seeing an uptick in demand for its gas exports due to the disruption to exports from Qatar and the UAE in the wake of the US and Israel’s attack on Iran on 28 February.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16478927/main.png
    Wil Crisp